Insightful analysis and commentary for the US and global equity investor
Contributors: Douglas McIntyre Jon C. Ogg

Previous Posts

Friday, August 04, 2006

Media Digest 8/4/2006


According to Reuters, Toyota posted better than expected earnings.Quarterly operating profit was up 26.5% as sales were up in North America and Europe. The company retained its forecast for another record year.

Reuters writes that Motorola announced that US financial regulators are looking into the company's relationship with bankrupt cable operator Adelphia. Motorola, which provided set-top boxes to Adelphia was accused of "fraudulent transfers" when it made claims to the bankruptcy court for payments due for its hardware.

Reuters says that Apple is likely to restate earnings and delay its quarterly financial filing with the SEC due to its option back-dating investigation.

The Wall Street Journal writes that Starbucks blamed long lines for its mixed drinks for its poor same store sales figures. Investors are concerned that slower consumer spending may be harming the company's revenue.

The WSJ also writes that Google agreed to license content from the Associated Press. The move is viewed as a victory for "traditional media". Google links to content for its services like GoogleNews.

The WSJ reports that retailers posted modest gains in July. The figures helped allay fears of slowing consumer spending.

The WSJ also reports that KKR won the auction for Philips semiconductor unit.The firm and its partners will pay $4.35 billion for an 80.1% stake in the business.

Time Warner's AOL unit said its would cut as many as 5,000 employess as its restructures to rely more on advertising revenue, according to the WSJ.

The WSJ writes that computer manufacturer Gateway lost money in the last quarter as its margins dropped.

The New York Times reports that Merck's decision to try every case brought due to alledged health issues with its Vioxx drugs is discouraging plantiffs.

The NYT also reports that real estate concern SL Green will buy competitor Reckson Associates for $4 billion.

Slower growth of its subscriber base sent shares of Sprint/Nextel down almost 12% according to the NYT.

The NYT reports that CBS's profits rose, but revenue was off due primarily to weakness in its radio business.

Douglas A. McIntyre

Powered by Blogger